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The Cypriot government will soon launch two additional calls for tenders for its project to import liquefied natural gas into Vasilikos Bay.
Defa, the state utility responsible for the purchase and distribution of gas, is already bidding for a floating storage and regasification unit to be deployed on the south coast of Cyprus in 2020 or 2021.
Defa chairman Symeon Kbadianides told Upstream that the new tenders would be for LNG supplies and the owner's engineer.
He added that in mid-February, "we plan to issue a statement of interest for LNG supply".
Kbadianides explained that the expression of interest on the offer would cover the framework sales contracts "allowing us to buy in the spot market, as well as a sales contract and purchase – of a duration of three to five years, perhaps – for a percentage of demand expected by Cyprus "
Once Defa becomes aware of the size of the FSRU that will be deployed, tenders will be issued for LNG supplies.
Also in mid-February, Kbadianides said the bid documents would be issued for an owner's engineer to help Defa implement the LNG infrastructure project.
Kbadianides confirmed that the deadline for submission of tenders for the supply of the FSRU – with the option of providing a floating storage unit (a LNG tanker) if additional storage capacity was required – had been extended from 18 January as of March 29th.
Andreas Pentaliotis, head of natural gas at Defa, said the delay was due to the fact that "the market needed a little more time and, on our side, we tried to meet the requirements of the process. In order to avoid any subsequent problem. line".
Initially, the government wanted the FSRU to be operational by November 30, 2020, but Defa has now adjusted this schedule.
"For reasons that we can not discuss for the moment, we have changed the timeline of the project," said Kbadianides.
"We will issue new instructions (regarding the launch of the FSRU) as soon as possible in 2020 and no later than 24 months after the signature of the contract."
Assuming there are no surprises, he suggested that a contract for the supply of the FSRU could be awarded by the end of June.
Some bidders said they could put the FSRU online faster than 24 months, said Kbadianides, adding that during the bid evaluation process, "their proposals would gain some points, say".
The FSRU – expected to have a life expectancy of 20 years – must have a minimum storage capacity of 125,000 cubic meters and be able to unload LNG from tankers ranging in size from 120,000 to 217,000 cubic meters. .
A design, construction and operation contract also covers the manufacturing of badociated offshore and onshore infrastructures.
The total capital cost of the project – including the FSRU, the jetty, the pipeline and onshore facilities – is estimated at approximately EUR 300 million (US $ 345.5 million), with the European Union providing approximately one-third of these funds.
In addition, the cost of the operating and maintenance contract for a 20-year FSRU is approximately 200 million euros.
The FSRU program will help Cyprus reduce its emissions and meet its environmental commitments.
It will also provide security of supply and should remain a key project even if gas discovered off Cyprus or the eastern Mediterranean begins to be routed to the island.
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